June 28, The authorities in Xinjiang Uygur Autonomous Region have completed a draft plan for the development of an international energy city in Urumqi, and expect to hand it over to the State Council, China’s cabinet, before the end of the year, Beijing Business Today reported Monday.

According to the draft plan, Xinjiang International Energy City will be built in desert and semi-desert areas in Urumqi's suburbs, covering an area of 30.8 sq km. The project is expected to raise RMB 300 billion, which would contribute over RMB 100 billion a year to Xinjiang’s economy.

“Currently, the tentative ideas of the project have been accepted by the central government; therefore we can be certain that the plan will eventually gain approval,” Xu Fengxian, a researcher at the Institute of Economics under the Chinese Academy of Social Sciences and a consultant on the project was quoted as saying in the report.

The international energy city will be built into an integrated base for production, assembly and service functions, according to the draft plan.

Xu believes the project will bring a large number of investment opportunities to Xinjiang.

China Petroleum & Chemical Corp. (600028.SH, 0386.HK), PetroChina Co. Ltd. (0857.HK, 601857.SH, NYSE:PTR) and China National Offshore Oil Corp. (0883.HK, NYSE:CEO) have launched initial investments in the region, the report said.